By Elizabeth Kraus

Hmmm… Dang it! I’m trying to remember the time, when Mammoths walked the earth with dragons and dinosaurs–the first pages of the chronicle of mankind–before men became the top dog. My point is–what has for centuries supposed to have raised man above the beast is not the cudgel but an inward music an irresistible power of unarmed truth…Ethics! What a bummer! He never got it right!

Did you know, and by the way these numbers are not my own, they are from someone who knows what he’s talking about…China is dove tailing the Saudi’s…hoarding the gold behind your back!

China has been busy as a bee and at such speed with which they’re shifting their economic system that it is even more startling then you can envision! But we’ll talk about that later. For the time being, here’s another profound financial bitty going on in recent Middle East history that’s rising more than eyebrows. Gulf Arabs are having secret meeting by finance ministers and central bank governors in Russia, China and Japan to end dollar dealings for oil, and to move instead to a basket of currencies including the Japanese Yen and Chinese Yuan, the Euro, and Gold, and are planning a new unified currency for the nations in the Gulf cooperation Council, including Saudi Arabia, Abu Dhabi, Kuwait and Qatar—which means, oil will no longer be priced in dollars!

This sounds like a dangerous prediction of a future economic war between the US and China over black gold—yet its again turning the region’s conflicts into a battle for great power supremacy! Well discuss this at a later time as other new developments are coming in screamin’ hot!

Back to the jungle.

As I always do, I read multiple reports a day on economy, and ran across this little ditty. It said, Saudi Arabia has doubled its gold holding recently, so secretly, and so covertly, that they had to modify their reported gold reserve in the first quarter of 2008 from 143 tonnes or 1.2 % previously to a now reported 322.9 tonnes or 2.9 %.

Here’s the paradox, is it really a mere accounting adjustment or is it an indication that the oil rich nation is veering away from its conservative reserve policy!

Only a fool could know that? Bearing arms in a responsible manner subjectively in this regard, I am trying to use my hind sight objectively, by informing those unawares, in a higher level of intelligence than me, just how this covert operation was born into U.S., soil.

Do you know where your dollars went? I mean, other than to the movies…

Did you know that in 1928, Saudi Arabia gave an exploration license to Standard Oil Company of California for around 35,000 Gold sovereigns? The company stuck oil in 1937. After this, more and more companies stuck oil in the Middle East. Then, in 1960, the Organization of Petroleum Exporting Countries (Opec) was formed, comprised largely of oil producing countries from the Middle East. It was formed so that the countries could take on the big international oil companies, who till then been dictating terms…

Not to give you a history lesson here, but it’s worthy to know, that Juan Palo Perez Alfonso, a Venezuelan oil minister was the brain behind Opec. And the irony was, he had studied the way the Texas Railroad commission works when he had been exiled to the U.S. So, he used the Texas model to establish Opec.

But, here’s the tip of the iceberg—Saudi Arabia and some other Opec countries started to use these dollars to buy gold and the price of gold shot up through the roof, going from $ 258 p/oz in May 1979 to $ 678 p/oz in 1980. And, while they were buying gold, we in the West were stacking up on credit cards…not that I blame you, I did it too, thinking like you, that the World of Finance System is based on the belief, that Credit is Money…especially, if you didn’t have cash on hand for the movies…

But as the fantasy began to blur, truth revealed–Credit is not money, ‘cause money cannot be created out of Nothingness. Money is a store of work, a store of wealth…but, Gold is money! A devilishly tempting little ‘gem,’ which is becoming more and more of a hierarchical thing in the scheme of high finance awakening.

The impetuous behind skyrocketing global gold demand, has become a sudden golden revelation for the world as the kingdom, which sits atop the world’s largest proven reserves of conventional crude oil, steps up to reveal his ancient talent—the kind in the likes of Ali-Baba and his 40 thieves, but have chosen not to publicize, it until now…

History of mechanics or a despot

“The World Gold Council said on Friday, that the central banks of Russia, the Philippines, Kazakhstan and Venezuela have been buying gold, and Saudi Arabia’s monetary authority has ‘restated’ its reserves upwards from 143m to 323m tones.” But just a sec, let’s look at the flip side. If there is any theme to this–to the bullion rush, it is a fear, that the global currency system is unraveling. Or, if we look at it another way, gold itself is reclaiming its historic role as the ultimate safe haven and benchmark currency.

But, what about that sly Fox accumulating it, and hiding it behind the chicken coop!

Saudi’s SAMA’s (Saudi Arabian Monetary Authority) total official holdings of the precious mental are worth about $14.33 billion, or roughly 3.5 % of the country’s total $413 billion in foreign assets. “the only reason (for change) besides the accounting of a larger portion of gold as SAMA assets, was they could have brought more gold in 2008,” said John Sfakianakis, chief economist at the Riyadh-based Banque Saudi Fransi-Credit Agricole Group. “I think it was purely a buying opportunity in 2008,” he said, and that it should not be “seen as a signal for sovereign debt doubts globally by the central bank.”

Wha’…whoah! If it was all there was to it, then why hide it? The increases, recorded in SAMA’s April Monthly Statistical Bulletin, fails to even remotely explain the more than doubling of its gold reserves as reported by the World Gold Council! Saudi figures show that gold holdings by the country climbed by 867 million riyals (231.2 million) in 2008 from the previous year. A call to SAMA for comment went unanswered. Of course!

A fox is a fox is a fox with an accomplice! From available evidence, there are facts to show that the Saudi’s bought all of this gold in the first quarter of 2008—but refused to publicize or report the purchase until now, instead of holding the bullion in a “non-reserve” account or possibly by the Saudi Sovereign Wealth Fund on behalf of SAMA. So, come on Chief honcho Sfakianakis, do you think the entire world is under the spell of a Jedi mind trick?

Okay, let’s back peddle

Maybe I am way off base, but I suspect in this case if all the details were disclosed, there wouldn’t be a conspiracy, nor some covert secret scheme going on, as it has been for a long time with some of the oil-rich nations. Have we been so clueless that we didn’t see, we didn’t suspect that they might be buying gold on the sly through their sovereign wealth funds that do not necessarily report their investment holdings— you tell me?

Saudi highway code

Ai, Ai, Ai! Unshakable grasp of the obvious…The world’s 4th largest holder of foreign exchange reserves is hoarding…Watch for crossroads! Cause–

Saudi news is reminiscent of China’s announcement in April 2009 that it had purchased some 600 tons of gold over the prior six years, more than doubling its holdings from 454 tons to the current reported level of 1054 tons. The Chinese have not reported additional gold purchase since then. However, we believe China’s central bank continues to buy gold month after month but chooses not to report their additions so as not to boost the market price as such an announcement would likely to do.

Maybe I am wrong, and I am sure someone will be happy to inform me of such, but a fox is a fox is a fox that hunts in the dark so you can’t be sure what he hoards away until you awake to daylight! Based on Saudi’s covert and a cunning intelligence, I wouldn’t be surprised to learn that “SAMA continues to buy gold, and with the number of other central banks either buying gold outright, or surreptitiously, and with U.S. policymakers already on the defense, the Saudi’s may no longer feel quite so obligated to tow the U.S. line.”

Which also makes me wonder, how long do you think Saudi Arabia—Bin Laden’s birthplace—fuel our war planes so we can bomb their Muslim neighbors? What’s at stake here is 259 trillion barrels of oil and 204 trillion cubic feet of natural gas….perhaps, just in case, we should put our sights elsewhere. Maybe Afghanistan…The oil fields above Afghanistan are vast, we’ll have to probably build pipelines through Afghanistan…but at last we might be free of the high fluting oil prices, fuelling Saudi’s Gold hoard!

Home turf and the right algorithm

While we contemplate our global economy, there’s a grasshopper outbreak in Boise, Idaho! Okay, I just threw that in so you have something else to think about…But seriously, with the rising uncertainty of what will happen, whether its grasshoppers assaulting your fields, or the economic uncertainty driving the gold higher and faster over your head, you have to decide how to safe regard your futures survival. Your hard earned savings depends on it! I can only tell you, as a greenback, Regal Assets gave me the intelligent and ethical answers I needed to back peddle from credit cards and be in the Gold! It is your time too, to protect your fields as well as your wealth with precious metals. Gold and silver have staged one of the best ten year runs in history and captured the attention of millions of investors worldwide. Here’s what Adam Brochert said in a very insightful article last May, 2009.

Gold is money. Gold is a form of cash just like a U.S. Treasury Bill is. I know you can’t spend Gold at 7-11 but you can’t spend a T-Bill at 7-11 either and yet they are both cash equivalents. The advantage Gold has over the U.S. Dollar is that Gold is not backed by debt and does not represent debt. Debt is bad thing to have hanging over your head during deflation as debt burdens become more and more oppressive as deflation grinds on. So, Gold is the only form of money on the planet (allow me to neglect other precious metals for now) available right now that is accepted world wide, is nobody’s liability/promise/debt instrument and requires effort to produce so it is valued for its relative scarcity.

And, with the banks failing week after week, and the Euro falling, how long do you think your dollars will last? The last decade may soon be written in history as what jumpstarted the revolution in personal finance. Don’t get slapped in the face with pie in the sky promises, your financial future is too precious to postpone. To get your start in precious metals call 1-888-700-9887 or visit www.regalgoldcoins.com.

Buy Gold Bullion

Buy Gold Coins

Buy Gold Bars

Related posts:

1. Double Dip Recession At Hand
2. Crude Oil, Seeds Of OPEC Talks
3. St. Gaudens double eagle
4. Oil Surging